Howzat? The clamour to legalise sports betting wagering in India

Published

5 February 2016

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By Sameer Hashmi

Mumbai Business reporter

It is the last over of the cricket match, with India requiring 17 runs to win against Australia.

In his two-bedroom house situated in main Mumbai, a middle-aged man is viewing the game, nervously. He's sitting on the edge of his grey colour sofa with his cellphone glued to his right-hand man.

He has made more than 10 contact the last 30 minutes - not to talk about the match however to keep revising his bet.

Five minutes previously his cash was on Australia, but now as the Indian batsman prepares to deal with the last over he's altered his mind.

"I believe India is winning, make the modification," he tells his bookmaker on the phone.

And a few minutes later on his prediction comes real, as India wins the match in a nail-biting finish.

"I have made $200 today," he says with a childish glee.

For more than 3 years he's been banking on cricket matches. We can't expose his name as what he's doing is unlawful in India.

Other than horse racing, sports betting of any kind is not enabled in India. Despite that, prohibited wagering syndicates thrive in the country.

'Black money'

According to the Doha-based International Centre for sports betting Security, India's unlawful sports betting market deserves some $150bn a year. And much of that gambling money is directed towards cricket.

With no legal avenue, punters position bets utilizing their phones by making calls to bookmakers. Gamblers can bank on anything related to the cricket match, from who is winning to the greatest individual run scorer.

Most of these deals include so-called "black money", which is money not declared to the taxman.

The 1867 Public Gambling Act bars any kind of sports betting in India, however unlike in the US which has a law prohibiting web sports betting, there is nothing comparable here.

And overseas wagering companies are utilizing this loophole to draw Indians. Even though there are no online sports betting operators based out of India, a lot individuals have actually signed up accounts with offshore companies.

"Legally you can escape [with this], as the law is ambiguous for online sports betting," states Mumbai- based lawyer HP Ranina.

But despite this, it is "offline gambling", done through phone calls which control the market.

Calls for legalisation

The clamour to legalise wagering in cricket has grown after a panel designated by India's Supreme Court proposed the concept, stating it would assist secure down on corruption in the country's favourite sport.

The Justice RM Lodha Commission was set up to recommend modifications in the functioning of India's cricket regulative body, the Board of Control for Cricket in India (BCCI), after the 2013 Indian Premier League sports betting scandal came to light.

Two franchises have actually been banned for 2 years after some players and group officials were condemned of fixing parts of the match at the request of bookmakers.

The panel likewise argues that legalised wagering will bring in tax profits for the exchequer that might amount to $2bn a year.

Even gamblers feel that legalising sports betting is a move in the ideal instructions.

"I do not mind paying some cash out my revenues, as long as I can gamble publicly," states our cricket bettor.

It would also open a substantial organization chance for licensed bookmakers and worldwide online sports betting companies to establish operations in India.

And it would help limit match repairing in cricket and other sports betting, argue numerous, by helping make deals involved in sports betting more transparent.

"If you work alongside wagering business, you will have a really reliable approach of stamping out match fixing," states George Oborne, who runs a mock wagering site, India Bet.

But lots of also think, that the taxes levied on the gambler and the bookie will need to be reasonable to make it attractive enough for them to gamble legally.

However, there are limitations.

"Definitely there will be illegal sports betting because (some) individuals would not desire to leave an audit path by entering the white market," states Mr Oborne.

He adds that people who utilize unaccounted money to position huge bets will never ever bet lawfully.

Approval concern

For sports betting gambling to be legalised, parliamentary approval will be required to create a new law, and politically this will be a hard idea to offer.

"Although lots of people are involved in some sort of gambling - it's still a controversial concern for many," says our unnamed punter.

And considered that India has a federal structural - each state will have to likewise pass a different law to legalise sports betting gambling in their area.

"The procedure is so long and tricky that it will take years," says Mr Ranina."That's why, we are cynical about this becoming a truth anytime soon."

Yet with the concept having been backed by an official panel for the very first time, a minimum of an argument has fired up around a subject - which previously was considered a taboo.